Saturday, March 6, 2010

5180-5200 Key Levels to Watch Out

It is an impressive post budget rally. The Market has moved most of the indicators has short term positive with generous help from the FIIs.Does it face any resistance on the upside or is it a smooth ride ahead?

1. The 80 percent retracement of the fall from 5310-4675 comes to 5183.

2. If we draw a trend lie connecting the tops from Jan'08 to the one in Jan'09 the trend-line comes to 5180 - 5200 zone. If we break this, we are likely to make new highs in the region of 5500.

3. The monthly pivot is at 5183 level.

4. On the fundamental side, we have the advance tax payout season. But, in spite of this the markets had rallied last year.

5. The NMDC FPO hits the market next week.It will suck huge liquidity from the markets.

6. The US Markets have rallied and if they rally any further are on the brink of making new highs. The Greece situation has stabilized. Will it be Spain next? Remember Bear Stearns started it all off but Lehman was the catalyst. We may see more cockroaches coming out in May-June.

7. We have crossed all the moving averages on the upside. We have a slew of supports in the range 4930-5000 and resistances around 5180-5200. This may be our range for the month of March.


  1. true buddy
    5180-5220 i see the top for this rally
    and it is advisable to buy puts of 5000 around these... for correction expected from these levels.......till 4920-4830 levels

  2. Hi,

    As per Gautam's chart 5150 almost reached. Definitely there will not be only one cockroach in the place. But is it must to reach 5183 levels and will it reach, as almost we reached high of 5147 this another 40 points is must to reach technically?

    Novice technically. Or shall we hold the short with SL of the above on clolsing level.


  3. @ ABN stocks - At this stage u r the only person suggesting to buy 5000 puts :) as everybody is telling highest OI in 5000 puts hence can't break (theoritically??) yes, me too thinking that this 5000 is manupulative one?? just creating a mass can't break that level, but if selling comes then it will be heavy fall right?

    But $ question is will it happen? as expiry is nearing and just 9 days left and don't the impact of NMDC..

    Market is supreme.


    PS : If any sell signal comes will add more 5K puts